Romania’s public postal services company Posta Romana will soon be able to use a RON170mn (€36mn) capital injection contributed by the state despite the minority shareholder, the Fondul Proprietatea (FP), having challenged the capital increase in court, Communication Minister Bogdan Cojocaru announced quoted by economica.net. 

Cojocaru admitted part of the money will be used to cover the company’s overdue debts to the budget, a controversial decision opposed by the minority shareholder.

The government has won all the court trials on this matter so far and will soon be able to unblock the capital increase, Cojocaru explained. He added that Posta Romana will seek to contract loans in order to finance its expansion plans.

In May, the government disbursed RON156mn out of the total RON170mn capital increase decided in February. FP must match the government’s contribution with a RON56mn contribution in order to preserve its 25% stake in Posta Romana. 

The fund challenged the capital increase in court, after claiming that such a move does not make sense as long as the money is aimed at covering company’s past losses. The government's planned capital increase would dilute FP’s 25% stake to 6.25% unless FP matches the state’s contribution.

FP’s co-president Johan Meyer argued in February that Posta Romana should file for insolvency, Romania’s then communication minister Lucian Sova claimed in a statement after a meeting with the minority shareholder’s representatives. Such a proposal is unacceptable, he added. Sova accused FP of a “lack of pro-active approach” running not only against the interest of the companies it holds stakes in, but also against the interest of its own shareholders